DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICT(S) IMPACTED: City Wide
SUBJECT:
CPS Energy Rider E20 - Residential Senior Citizen Late Payment Waiver
SUMMARY:
CPS Energy requests City Council approval of an Ordinance which establishes a Rider E20 that would allow for the waiver of late payment fees assessed to senior citizens who are 60 years of age or older, are the Customer of record and are at or below 125% of the Federal Poverty Guidelines.
BACKGROUND INFORMATION:
During the CPS Energy rate case process that occurred in 2013 and through various stakeholder discussions with the community and City Council, CPS Energy committed to implementing relief to low-income senior customers by waiving late payment fee charges.
ISSUE:
CPS Energy currently assesses a late payment fee of 2% of its billed amount. CPS is requesting that the City Council approve a Rider E20 that would allow it to waive late payment fees assessed to customers who are 60 years of age or older, are the Customer of record, and are at or below 125% of the Federal Poverty Guidelines and on one of the following rate tariffs: Residential Service Electric Rate RE, Residential All Electric Service Rate RA, or General Service Gas Rate G.
CPS Energy currently has 42,000 senior customers who are 60 years of age or older and estimates that approximately 6,000 low-income senior customers might qualify for this program. CPS estimates that the annual waived late payment fees would be approximately $75,000. If approved by the City Council, the Rider E20 would become effective on February 1, 2015.
ALTERNATIVES:
City Council could elect not to approve this Ordinance and CPS Energy would continue to bill late payment fees to these customers or City Council could authorize CPS Energy to implement an alternative financial assistance program.
FISCAL IMPACT:
CPS Energy estimates that the annual waived late payment fees would total approximately $...
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